The money going to the banks in the form of non-voting preferred stock. Because of that, they are going to have to loan it out to preserve their earnings per share as the preferred stock will have first call on the earnings.

The money going to the banks in the form of non-voting preferred stock. Because of that, they are going to have to loan it out to preserve their earnings per share as the preferred stock will have first call on the earnings.
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I don’t think so ,,, sure preferred has first dibs not on the earnings but on the earnings distributed as dividends ,, these banks will simply cut their dividends to the bone and account for the newly issued stock by listing a greater percentage of the company as being public ,, the existing common shares will then still represent the same percentages of the bank as a whole. Sure EPS will suffer but I don’t really think these banks care at all about that... and with no voting rights whats to stop the dividend cut?